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NFT Sales and the 1099-DA: The $600 Rule Explained

Short answer: The IRS says NFTs are digital assets. The 2026 Form 1099-DA instructions define a specified NFT and let a broker use an optional reporting method under which sales are not reported if your total gross proceeds (after transaction costs) from all specified NFT sales do not exceed $600 for the year. If a broker doesn't send a form, you must still report your transactions.

What the instructions say

• A digital asset is a specified NFT if it is indivisible, unique, and does not directly or indirectly give the holder an interest in certain excluded property (the detail is in Regulations section 1.6045-1(d)(10)(iv), not read).
• A broker using the optional method is not required to report specified NFT sales if the customer's aggregate gross proceeds from all such sales, after allocable transaction costs, do not exceed $600 for the year. If the total is above $600, the broker reports all of that customer's specified NFT transactions together on a single Form 1099-DA.
• Under the optional method the broker may leave box 1g (basis) blank for specified NFTs, and may report sales by a creator or minter (first sales) on a separate form with aggregated proceeds.
• The IRS Digital assets page says brokers may choose aggregate reporting for certain stablecoin and NFT sales above de minimis thresholds, and that a separate $600 threshold exists for payment processors.

What it does not change

• The IRS Digital assets page says you must report digital asset transactions "whether or not they result in a taxable gain or loss", and the digital asset question asks about receiving or disposing of any digital asset (guide).
• A missing 1099-DA is not a reason to skip reporting (no 1099-DA).
• Many NFT sales happen on non-custodial platforms; the IRS page says the final regulations do not impose reporting on brokers that do not take possession of the assets.

Records worth keeping

Mint or purchase date and cost, fees, sale date and price in U.S. dollars, wallet addresses (year-end checklist). For how stablecoins differ, see stablecoins on the 1099-DA.

FAQ

Does $600 mean I owe nothing under $600? No. It is a broker reporting threshold, not a tax threshold.

Are NFTs ever taxed as collectibles? The IRS page lists Notice 2023-27 ("Treatment of certain NFT as collectibles"); we only saw its title and do not describe the rule.

What we could not verify

• Notice 2023-27 text (title only).
• The Regulation definition of excluded property.
• Which of your platforms uses the optional method.
• Creator/minter first-sale reporting details beyond the instruction summary.

Sources (official)

• IRS, Instructions for Form 1099-DA (2026) — https://www.irs.gov/instructions/i1099da (PDF read in full 17 October 2026)
• IRS, Digital assets — https://www.irs.gov/filing/digital-assets (read in full 17 October 2026)

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Not tax advice. Examples use made-up figures. Nothing here has been reviewed by a tax professional. We may earn commissions from affiliate links where marked; see the disclosure.